Where to Invest a Million Dollars Now

Sometimes the fees charged by actively managed funds are actually worth it. The best fund managers know how to balance broad frugality and targeted splurging.

The easiest way to secure higher mutual fund returns is to keep fees low, because they come off the top. On a $1 million portfolio that earns 5% a year, a tiny 0.10% fee saps $16,000 in returns over a decade. There are stock funds that cost less than 0.05% a year, but according to the Investment Company Institute, the average investor pays 0.79%, suggesting plenty of room for savings.